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REPORT OF 
THE PRESIDENT 

RICE UNIVERSITY 
1989 




Digitized by the Internet Archive 

in 2011 with funding from 

LYRASIS Members and Sloan Foundation 



i 



http://www.archive.org/details/reportofpres19881989rice 



GEORGE RUPP 

PRESIDENT 




In this annual report for 1988-89, 
I am pleased to present profiles of 
colleagues who are providing leader- 
ship for all of us in the larger Rice 
community. Each is the dean of one 
of our schools or a related area of re- 
sponsibility. I am proud of each of 
them individually and of all of them 
working together as a team. 

Like the rest of us at Rice, our 
deans affirm the special identity of 
this university: an institution of the 
highest quality, deliberately small in 
scale and focused on undergraduate 
education, yet also a center for re- 
search and scholarship. All of us 
know full well that this identity not 
only affords great opportunities but 
also establishes definite constraints. 
We must not imitate other larger and 
more differentiated institutions. We 
cannot attempt to do everything, or 
we will do nothing well. Yet we also 
cannot settle back and do only what 
is easily within our reach. Instead, 
we must stretch our collective selves 
to be all that Rice has aimed to be- 
come from the beginning. 

In reading their own words and 
the words about them, I hope we 
will all sense the intelligence, the 
imagination, and the energy that our 
deans embody individually and col- 
lectively. They have a profound con- 
viction about the greatness of this 



university and a vigorous commit- 
ment to developing that greatness 
still further. Their ambitions will 
not be fully realized easily or soon — 
and will surely not be realized at all 
without participation from all of us. 
Accordingly, I invite each of us to be 
caught up in their vitality so that we, 
too, may contribute to the continuing 
distinction of this institution. 




George Rupp 



RICHARD N. STABELL 

DEAN OF ADMISSION 
AND RECORDS 




L 



When a university continues to at- 
tract the very best students year after 
year as Rice does, what can be done 
to improve its admissions proce- 
dures? 

That's the dilemma Richard N. 
Stabell, dean of Admission and Rec- 
ords at Rice, finds himself and his 
program in. It is a comfortable di- 
lemma that makes Stabell feel un- 
comfortable. 

But he does not believe in taking 
chances. Unlike many admissions 
deans and directors at the nation's 
best universities, Stabell read at least 
2,500 of the more than 5,000 pro- 
spective student applications that 
came into Rice last year. Most of his 
colleagues hire outside readers for 
the task. But not Stabell. 

He, his staff, faculty, student, and 
alumni volunteers meticulously 
search for the right students for Rice. 
Thus far, their success is legend on 
the Rice campus and the envy of 
most every major national university. 
"It's a team effort," he says. "Much 
of the success of the admissions 
program at Rice is due to this effort." 

And, of course, he attributes much 
of the success to the reputation of the 
university and its tuition and finan- 
cial aid program. "The financial 
condition of the university, with its 
competitive tuition and attractive 
scholarship program, enables us to do 
some things that many other univer- 
sities would have trouble doing," he 
explains. Its reputation as a univer- 
sity of the first order and its emerg- 
ing image have also helped to attract 
students, according to Stabell. 

"We're not going to put our heads 
in the sand, however," he says. 
"We're going to find the best class 
each year that we can find." 

The luxury of putting together 
such a class was not always the case 
at Rice, as it is today. Until 1965, 
Rice, of course, charged no tuition. 
During those years, it was not diffi- 
cult to put together a gifted class of 
students. "But from 1965 to 1972, 
the numbers and quality as measured 
by SAT scores dropped," Stabell 
points out. "We selected our class 



from 1,600 applicants." 

Rice's problem is that it used the 
same strategy it used during the times 
of no tuition, according to Stabell. It 
was time for a return to basic admis- 
sion procedures, and Stabell saw the 
handwriting on the wall. "We just 
went out and said, 'We're interested 
in you,' " he says. Stabell also 
streamlined the application process 
by combining the early decision and 
regular applications. "They just 
check a box now." 

Stabell also worked at mobilizing 
volunteers, involving more people 
from the Rice community in the 
process. "Alumni volunteers host 
receptions and attend high school 
nights in their communities," he says. 

"Current students also give us 
tremendous help. They host prospec- 
tive students who come to visit, put 
on special events, visit high schools, 
write letters, and make phone calls." 

All in all, the result is that over the 
last five years, applications grew 
from 2,900 to 5,200. 

The significant challenge for the 
1990s is to continue attracting the 
nation's most talented students. "We 
are faced with changing demograph- 
ics and financial demands, but the fu- 
ture's very bright for Rice," Stabell 
says. 

Among the major research univer- 
sities. Rice will remain competitive 
for good students because it offers 
reasonable tuition and because of its 
reputation for exceptional under- 
graduate education, according to 
Stabell. 

One concern, however, stands out 
above all others. "We are striving for 
diversity in our classes," he points 
out. "This is an ongoing challenge 
that every university must deal with." 
Projections show, he says, that by the 



year 2000, Texas will be heavily 
Hispanic. "We need to attract more 
qualified minorities to Rice." 

Part of his strategy for dealing 
with this issue is to "get out there and 
let our presence be known in Hous- 
ton." After all, he says, "Rice is not 
an island but an integral part of the 
community." 



SARAH A. BURNETT 

DEAN OF STUDENTS 




Psychologist Sarah Burnett laughs 
easily and heartily with a trace of a 
Tennessee accent as she relates a 
student's response to her appointment 
as dean of students: "Oh, she's too 
nice for that job!" 

An outgrowth of the position of 
proctor, which dealt primarily with 
student discipline, the re-created dean 
of students' role includes interaction 
with students in many other areas. In 
addition to enforcing penalties on 
alcohol policy violations, disorderly 
conduct and the like, in her new role, 
Burnett oversees the Office of Stu- 
dent Activities, the Office of Student 
Health Education, the Counseling and 
Psychiatric Service, the Student 
Health Service, and the activities of 
the Rice Memorial Center. "The hope 
is that by having positive interactions 
with students in other ways, they 
won't think of the dean of students as 
just the ogre," she says. 

As one of two women deans at 
Rice, Burnett says she is "glad 
I'm not the only one." But that 
position is not particularly extraordi- 
nary for her. She was in the minority 
as a woman graduate student in psy- 
chology at Tulane University (where 
she earned M.A. and Ph.D. degrees in 
experimental psychology); she was 
one of the first women hired in the 
psychology department at Rice and 
the first woman to get tenure in the 
School of Social Sciences. "It's 
something women my age are used 
to," she says. 

Although the word "feminist" was 
not in her vocabulary during her high 
school years, Burnett says she was 
brought up to believe women should 
set high goals for themselves. Now a 
self-described feminist, she is deeply 
concerned about opportunities for 
women and women's rights. "Some 
of the brightest women in the nation 
go to school here," she says. "I want 
them to believe they can achieve 
something very significant in this 
world. It pains me to see really tal- 
ented women (and minorities, too) 
underestimate themselves." In her 
new position, Burnett feels "obligated 
to be sensitive to the needs of women 
on campus and to represent those is- 



sues whenever and wherever I can." 
She always hoped she'd see "equality 
by the year 2000" but now knows it 
won't happen that soon. But Burnett 
hopes to see a 50/50 male/female 
undergraduate population at Rice in 
the near future. (It's exactly 60/40 
now but was about 75/25 when she 
arrived at Rice in 1972.) "It could be 
done without any loss in the caliber 
of students," she contends. 

Although she started out studying 
chemistry in the post-Sputnik period, 
Burnett knew she was hooked on 
psychology when she realized she 
was reading about it for pleasure 
during her off-time. She says she's 
always been interested in what moti- 
vates people. She took her Ph.D. in 
the area of learning and memory and 
has done research on intelligence and 
cognitive processes. 

"I think a social science back- 
ground is often an advantage for 
student affairs work," she says. She 
finds her professional background 
helpful in dealing with such issues as 
sexual harassment, date rape, sub- 
stance use and abuse, parental con- 
cerns, and the stress and health ef- 
fects that come from living under a 
lot of pressure. Her knowledge of 
statistics and evaluation will also 
come in handy since many of the 
programs under her jurisdiction really 
need to be evaluated regularly for 
their effectiveness. 

"What we in student affairs try to 
do is to be aware of the possibilities 
for student growth in both the aca- 
demic and non-academic realms and 
to do what we can to foster that de- 
velopment," she says. "We believe 
the experience gained by being the 
president of an organization or work- 
ing on the Thresher, for example, is a 
valuable one. The trick is to help 
make it more valuable educationally 
by offering leadership seminars or 
training in peer counseling or a jour- 
nalism class for the Thresher staff 
while encouraging the students to run 
their own show." 

Burnett says her biggest challenge 
will be to try to find ways to improve 
all the student services within the 
budget constraints. She is concerned 
with finding a place for students to 
gather from 3:30 p.m. (when 
Sammy's Cafeteria closes) to mid- 



night. In the short-term, Burnett 
would like to see the addition of a 
coffeehouse, serving non-alcoholic 
beverages as an alternative to Willy's 
Pub. Her ultimate dream is to have an 
all-encompassing "event" center for 
theater, films, and concerts, with an 
outdoor swimming pool, bowling 
alleys, and restaurant. But she knows 
she cannot "change everything in a 
day." 

As a member of the admission 
committee for the last several years, 
Burnett has noticed some changes in 
the students who matriculate at Rice. 
The entering class of 1989 is the best 
class she has ever seen: strong aca- 
demically as always, but more active 
in organizations and more interested 
in the community around them. "Rice 
has always had students who were 
outstanding as leaders or very active 
in community service. This year it 
seems the whole class is like that," 
she says. 

"The majority of students at Rice 
are fun to interact with," Burnett 
says. "They're clever and funny and 
highly motivated." Although she 
hopes that the disciplinary actions do 
not overshadow the other part of her 
job, it brings her satisfaction just to 
know that "what I'm doing is impor- 
tant. It makes a difference." 



MICHAEL M. CARROLL 

DEAN OF THE GEORGE R. BROWN 

SCHOOL OF ENGINEERING 




,. 



Dean of Engineering Michael M. 
Carroll is a master crossword puzzle 
creator — his cryptic brain-teasers 
have appeared in such bastions of 
puzzledom as the New York Times. 
(Clue: Equip the old professor for 
final battle. Answer: Armageddon — 
arm/aged/don.) 

Carroll's penchant for finding 
answers to complex, often puzzling 
questions will come in handy over 
the next few years as he and his engi- 
neering colleagues grapple with the 
challenges they face within the 
School of Engineering. 

The native of Thurles, Ireland, 
arrived at Rice in fall 1988 from the 
University of California at Berkeley, 
where he had been on the mechanical 
engineering faculty since 1965, the 
last five years as Shell Distinguished 
Professor and, since 1986, associate 
dean for interdisciplinary studies. His 
professional accomplishments earned 
him election to the National Acad- 
emy of Engineering in 1987. 

Carroll's first year as dean at Rice 
was spent "learning how to be a 
dean," he says. New faculty mem- 
bers — eight this year — have been 
hired, most of them to replace those 
who had left or retired, and the more 
pressing space requirements for the 
school have been met. 

Financial questions have been 
dealt with as well. On the one hand, 
the expenditure of sponsored research 
funds in the School of Engineering is 
up to $10 million in 1988-89; the 
1983-84 figure was about $4 million. 
On the other hand, the cost of labora- 
tory equipment for the school's 
undergraduate instruction program 
continues to grow, and, like other 
university divisions, they are seeking 
ways to supplement their budget. 

And perhaps more than any other 
university division, the School of En- 
gineering is finding the question of 
market value affecting faculty re- 
cruitment. "The philosophical ques- 
tion is — should a professor of engi- 
neering be paid more than a professor 
of physics or a professor of English 
or history?" Carroll asks. "Person- 
ally, I'm not sure that the correct an- 
swer is 'yes ,'but the national answer 
is 'yes.' The answer at Rice tends to 
be 'no ,'and that makes it difficult to 
keep the troops happy, to compete 



successfully with other institutions, 
and to protect the good faculty that 
we have." 

What all of this means for Carroll 
is that he and his colleagues in engi- 
neering will become more involved 
in fund-raising efforts for their school 
in the coming years. That activity 
will add another piece to the puzzle 
Carroll is already pondering, ele- 
ments of which he describes in terms 
of "balances and tensions." 

One such question of balance, he 
says, is making sure program growth 
in engineering is uniform. "We have 
been focusing on our strong areas, so 
it's no coincidence that some of our 
departments have grown and im- 
proved tremendously over the last 
few years," he says, citing computer 
science, mathematical sciences, elec- 
trical and computer engineering, and 
the biological aspects of chemical 
engineering as examples. "But at the 
same time, other areas have become 
weaker. I think mechanical and civil 
engineering both lost ground, as well 
as the more traditional areas of 
chemical engineering." 

Carroll believes he has found a 
solution to this particular puzzle, 
however — the creation of a new 
interdisciplinary research center. Ini- 
tial faculty meetings have taken place 
to discuss the formation of an Energy 
and Environmental Studies Institute, 
and early reactions are positive. 

While a prospectus for the insti- 
tute must still be written and ap- 
proved, Carroll hopes it will be op- 
erational within the next year. 

Other questions of balance Carroll 
faces could prove more difficult to 
answer. 

The first is striking the right bal- 
ance between teaching and research. 
"On the one hand, the idea of the 
teacher-scholar is a very important 
one," Carroll says. "The idea that you 
won't attract top-quality faculty to 
teach the undergraduate courses un- 
less you also have a top-quality pro- 
gram of graduate instruction and re- 
search is valid. But there's also the 
fact that one can only stretch so far." 

Another challenge for Carroll is 
how to balance the engineering cur- 
riculum between technical and non- 
technical subjects. "We certainly 
want to graduate well-rounded 



people, not just technocrats, and yet 
it's a struggle to do this within the 
confines of a four-year degree pro- 
gram," he says. "We'd like our stu- 
dents to have a good grounding in the 
humanities, in the relationship of 
technology to society, in professional 
ethics, in technical communication. 
Yet it is difficult to balance those 
with the technical content mandated 
by the Accreditation Board for Engi- 
neering and Technology (ABET)." 

Carroll has appointed a committee 
that will, in the coming months, be 
taking a hard look at the engineering 
curriculum to make recommendations 
for answering that question. 

Finally, he cites the problem of 
balancing theory and practice within 
engineering. "One definition of engi- 
neering is 'the application of basic 
scientific principles to real-world 
problems.' But that's too simplistic," 
Carroll says. "Some people like to 
work just on the basic principles 
rather than the real-world applica- 
tions, and Rice traditionally has 
leaned more to the theoretical side." 

Carroll believes a solution could 
lie with the interdisciplinary institutes 
in which the School of Engineering is 
involved — the Computer and Infor- 
mation Technology Institute (CITI), 
the Rice Quantum Institute (RQI), 
and the Center for Biosciences and 
Bioengineering, already in place, and 
the proposed Energy and Environ- 
mental Studies Institute. 

Puzzling challenges and creative 
solutions are something Carroll en- 
joys, so it comes as no surprise when 
he says he has had more fun than ex- 
pected in his first year as dean — even 
as he does his own personal balanc- 
ing act between being a dean, main- 
taining a research program on the 
response of porous media, facing the 
challenges of fund raising, and, he 
hopes, teaching a class. 

Nor is it a surprise to hear his opti- 
mism over the future of the School of 
Engineering. "Looking back at the 
last few years, I see tremendous prog- 
ress in the university as a whole and 
within the School of Engineering," he 
says. "I see no reason why we can't 
continue that." 



ALLEN J. MATUSOW 

DEAN OF THE 

SCHOOL OF HUMANITIES 



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10 



"The image of Rice as primarily a 
science and engineering school had a 
certain appropriateness when I got 
here," says Dean of Humanities Allen 
J. Matusow, who joined the univer- 
sity in the fall of 1963 after receiving 
his Ph.D. from Harvard University. 
"Quite a lot has happened since then. 
Rice today is a balanced university 
with programs as strong in the hu- 
manities as in the sciences." The hu- 
manities division now includes more 
than 100 professors, graduates one- 
quarter of the student body, and 
boasts a number of scholars with 
national and even international repu- 
tations. 

"Not long ago Rice was a waste- 
land in the area of the arts," Matusow 
recalls. "Along with the humanities, 
the arts have also arrived and indeed 
now flourish here. Thanks to the 
Shepherd School , we have live con- 
certs of high quality on campus every 
week. We have a dance company, 
over-subscribed courses in the studio 
arts, theater openings on the average 
of one every two weeks, two art 
galleries and a Media Center that 
offers courses in film-making and 
photography, and a film series featur- 
ing classics and underground films. 
The programs we have developed in 
the humanities and in the arts have 
helped to establish Rice's reputation 
as one of the most attractive universi- 
ties in the country." 

Matusow says that when he be- 
came dean in 1981, he had two cur- 
ricular goals: to present Western civi- 
lization as more than disjointed frag- 
ments and to end the insularity of the 
curriculum by bringing to the faculty 
scholars of non-Western cultures. 
With the introduction of a new uni- 
versity curriculum in 1988, science 
andengineering students are required 
to take a two-semester course on 
representative Western texts, a 
course, in Matusow's view, that goes 
a long way toward achieving one of 
his hopes. 

The William Gaines Twyman Pro- 
fessor of History, Matusow remem- 
bers that as late as the 1960s his de- 
partment offered courses only on 
America and Western Europe. "To- 
day," he says with some pride, "we 



are a world history department, offer- 
ing courses on China, Latin America, 
Africa, Islam, Judaic Studies, and the 
Caribbean, as well as courses in U.S. 
and European history." Rice has also 
built a program in Asian Studies and 
currently offers language instruction 
in Chinese, Japanese, Korean, and 
Sanskrit. "Global interdependence 
has become a fact of life," Matusow 
says. "The Rice curriculum has re- 
sponded to this challenge, which I 
regard as a moral challenge. The 
result is that we have become a more 
interesting place in which to study 
and to teach." 

Another of Matusow's goals as 
dean has been to promote interdisci- 
plinary discourse and recognize new 
currents of academic thought. He 
credits the Center for Cultural Stud- 
ies, part of President George Rupp's 
enhancement plan, with encouraging 
these developments. "The Center," he 
says, "has fostered cross-cultural 
conversation and sponsored work- 
shops in feminist theory, critical 
theory, and post-colonial discourse." 
Matusow is quick to add that tradi- 
tional disciplines have not lost their 
centrality at Rice and that the center 
also sponsors workshops in the an- 
cient Mediterranean world and me- 
dieval studies. "Our professors talk to 
each other, learn from each other, 
provide a critical audience for each 
other's work. The hermit-scholar, 
once so typical of the humanities, is 
not typical at Rice. Time and again, 
new faculty remark on the intellectual 
excitement they find on this campus." 

A native of Philadelphia and the 
son of a lawyer, Matusow briefly 
considered studying criminal law, but 
his love of history won out. During 
more than 25 years of teaching, Ma- 
tusow has been recognized numerous 
times by receipt of the Brown awards 
for superior and excellent teaching 
and is the recipient of the Brown 
Honorary Life Teaching Award. He 
received the Piper Professorship 
Award in 1980. Author of Farm 
Policies and Politics in the Truman 
Years and the nationally reviewed 
The Unraveling of America: A His- 
tory of Liberalism in the 1960s, Ma- 
tusow is currently working on a book 
about the Nixon presidency. 

Looking to the future, Matusow 



says the chief challenge will be to 
recruit and retain first-rate humanities 
faculty. "The market for professors 
has changed," he says. A decade ago, 
academic jobs were so scarce that 
Rice received a grant from the Mel- 
lon Foundation to create temporary 
appointments for younger humanists 
who had none. Now the top candi- 
dates for tenure-track jobs sometimes 
receive four or five offers. To attract 
the best and keep the outstanding 
people we already have, Matusow 
says, "we must remain committed to 
making Rice a special place where 
creative people can find intellectual 
excitement and strong institutional 
support. As good as we are, we must 
get better." 



11 



JAMES R. POMERANTZ 

DEAN OF THE 

SCHOOL OF SOCIAL SCIENCES 




12 



The future is close at hand for Dean 
of Social Sciences James R. Pomer- 
antz. Joining Rice for the fall 1988 
term, he arrived in Houston just in 
time for Hurricane Gilbert. Events of 
the first Pomerantz year at Rice 
seemed to take their cue from this en- 
trance, coming on with gale force. 

"My first task was to help the new 
Center for the Study of Institutions 
and Values, which began its first year 
of operation in 1988 as part of the 
enhancement program," Pomerantz 
noted. One of the five centers and 
institutes on campus formed for 
interdisciplinary research, the Center 
for the Study of Institutions and 
Values aims at bringing together his- 
torians, psychologists, sociologists, 
economists, and anthropologists to 
look at the events and trends shaping 
our lives. 

Together with center director 
Peter Mieszkowski, Rice professor of 
economics, Pomerantz set in motion 
a series of plans for CSIV: a major 
AIDS project to assess the impact of 
Acquired Immune Deficiency Syn- 
drome on Houston; multimillion- 
dollar grant applications for research; 
a publishing program; and a series of 
seminars with the wider Rice faculty 
on the often-opposed subjects of 
"Rationality and Altruism." 

This year, those plans are bearing 
fruit. The initial planning stage of the 
five-year Houston AIDS study is 
beginning to bring economists and 
sociologists together to look at the 
policy issues surrounding the AIDS 
epidemic, formulating the questions 
to be asked, the surveys to be taken 
and the methods of impact assess- 
ment. 

The seminar series on "Rationality 
and Altruism," which will go on 
year-long, will ask Rice philosophers 
and anthropologists to look at ques- 
tions of personal value from a mul- 
tidisciplinary point of view, engaging 
scientists as well. "A book is planned 
to come out of the series, with a 
chapter by each participating disci- 
pline," Pomerantz explains. "This 
kind of integration of efforts will be a 
major contribution to the field, to 



expand the world's knowledge of the 
subject and provide a published fo- 
rum for our Rice faculty." 

The near future will also bring two 
major social sciences conferences to 
the university. A national conference 
on the 25th anniversary of the Voting 
Rights Act of 1965 coordinated by 
sociology professor Chandler 
Davidson will look at the results of 
that legislation. A conference on the 
U.S. Senate planned by Joseph Coo- 
per, professor of political science and 
former dean, will bring to the campus 
a gathering of leading historians, po- 
litical scientists, and journalists. 

And, along the way, the university 
appointed Texas Lt. Governor Bill 
Hobby as Tsanoff Professor of Public 
Affairs beginning with the Spring 
1990 semester. 

Somehow in this first year of 
deanship, Pomerantz found time to 
chair a major conference in his own 
field, cognitive psychology. Held at 
Yale in May 1989, the conference 
will produce a major volume edited 
by Pomerantz titled The Perception 
of Structure, to be published in 1990 
by the American Psychological Asso- 
ciation. 

As an internationally respected 
expert on cognitive psychology and 
human vision, Pomerantz is also an 
active editor — he produced a leading 
volume in his discipline, Perceptual 
Organization (1981) — and writer of 
journal articles and reviews. Coming 
to Rice from the chairmanship of the 
psychology department at the State 
University of New York (SUNY) at 
Buffalo, Pomerantz clearly enjoys the 
challenges of a dean's duties. 

"Social sciences is a small school 
with six small departments, so it 
makes sense for us to launch as many 
interdisciplinary programs as pos- 
sible," he reflects. "I believe our 
initial success with bringing differing 
disciplines together in the centers and 
institutes will extend the idea of col- 
legiality and produce more major 
research." 

The near future will also see Jim 
Pomerantz polishing up his small, 
gem-like departments by actively 
recruiting to fill six faculty slots — 



primarily in replacement positions — 
and encouraging his faculty to pub- 
lish the results of the projects 
launched by the enhancement pro- 
gram. This lapidary quality to social 
sciences at Rice promises to take on 
a bright shine. Already, he notes, 
one-third of his faculty have pro- 
duced important volumes in their 
fields, and more are on the way. 



13 



JAMES L. KINSEY 

DEAN OF THE WIESS SCHOOL 

OF NATURAL SCIENCES 







'AJ-. '-/^I^I 




14 



In a comer office of the Space Sci- 
ence building, an "Eye of the Storm" 
works its magic. Electric blue bolts of 
"lightning" blaze in rapid frenzy from 
the base of a clear glass dome, hint- 
ing at the wonders of science and the 
power of nature. 

Found anywhere else, the "Eye" is 
a high-tech toy, the 1980s equivalent 
of a lava lamp. 

Found here, in the office of Dean 
of Natural Sciences James Kinsey, 
the blue bolts of electricity signal the 
energy of a school in motion. 

It is a motion that has picked up 
steam since Kinsey, a Rice graduate 
himself, left the chemistry depart- 
ment at the Massachusetts Institute of 
Technology 1 8 months ago in order 
to take the deanship at Rice. And it is 
a motion that promises further accel- 
eration in the next few years. 

If there has been a point of orien- 
tation at Rice University in recent 
years, it has been "interdisciplinary" 
or "multidisciplinary" — a focus on 
areas of interest that cut across tradi- 
tional academic boundaries. 

Indicative of this rethinking of 
disciplines are the changes taking 
place in the biological sciences, 
which have received a large share of 
Kinsey's attention over the last year 
and a half. 

First came a reorganization within 
the school itself, which has yielded 
two new departments that focus on 
what Kinsey calls "the two sides of 
the biological sciences." The Depart- 
ment of Ecology and Evolutionary 
Biology focuses on the biology of 
whole animals, population genetics, 
and ecosystems, while the Depart- 
ment of Biochemistry and Cell Biol- 
ogy concentrates on biology at the 
molecular and cellular levels. 

Next came a reorganization of the 
undergraduate curriculum, providing 
students in the biological sciences a 
common foundation of knowledge 
before they choose which "side" of 
the biological sciences they are most 
interested in. 

As lines of common interest are 
explored within the biological sci- 
ences themselves, faculty members 
are also working with scientists in 
other schools to further progress in 
such areas as biomedical research. 
The completion in late 1990 of a new 



biosciences and bioengineering build- 
ing, George R. Brown Hall, will help 
solidify this work and will enable 
Kinsey and his colleagues to begin 
the planned faculty expansion. 

Parts of the Department of Bio- 
chemistry and Cell Biology will 
move into the new, 107,000-square- 
foot facility when it is completed, 
along with the organic chemistry fac- 
ulty from the chemistry department 
and biomedical researchers from the 
School of Engineering. 

With building construction begun, 
Kinsey can now better focus on the 
goals for the School of Natural Sci- 
ences: recruiting the best new faculty, 
graduate students, and undergradu- 
ates possible. Pursuing these goals 
will bring Kinsey and his colleagues 
face-to-face with what he sees as the 
greatest challenges to the school's 
future: funding — for research, for 
competitive salaries, for graduate stu- 
dent tuition and stipends, and for pro- 
grams that will attract the best avail- 
able undergraduates to Rice. 

While the new building will help 
attract new faculty to the university, 
Kinsey admits that he will probably 
be looking toward developing a 
young faculty rather than recruiting 
people at the senior-faculty level, 
where competing for the limited 
number of available candidates 
means "salary-wars" with other uni- 
versities. "But developing a young 
faculty is something Rice has shown 
itself to be good at," Kinsey says. 

In order to support top young fac- 
ulty members and graduate students. 
Rice must — along with other univer- 
sities throughout the country — con- 
tend with what has become a steady 
decline in federal funding both for 
research and graduate student sti- 
pends. 

The research funding outlook is 
both good and bad. "Rice is improv- 
ing its competitiveness with other 
institutions for federal funds — we're 
steadily getting a larger piece of the 
pie," Kinsey says. "Having said that, 
I would remark that the pie is getting 
smaller. I'm quite worried about the 
prospects of future support." 

While industry cannot be expected 
to make up the shortfall, Kinsey 
hopes the development of interdisci- 
plinary research centers at Rice, such 



as the Institute of Biosciences and 
Bioengineering and the Rice Quan- 
tum Institute, will allow some of the 
support-raising to be done collec- 
tively rather than individually — a 
move that could help to better attract 
what federal research dollars there 
are. 

Declines in federal funding also 
pose a problem in recruiting and re- 
taining top graduate students. "At any 
given time, a faculty member is look- 
ing at secure funding for, at best, the 
next 12 months," Kinsey says. "And 
yet we take on students whose studies 
will last four years — perhaps five or 
more. I think the faculty and the insti- 
tution feel a very strong moral obli- 
gation for those students to be able to 
continue their studies to completion." 

Finding the best undergraduate 
students — particularly with an eye 
toward recruiting minorities and 
women — will require imagination 
and vision. "The number of young 
Americans choosing to study science 
and engineering is on a decline both 
at the undergraduate and graduate 
level," Kinsey notes. "And if you 
look at the 'shortage' of people going 
into science and engineering across 
the country, it is a shortage that 
would disappear if we recruited the 
same proportion of women and mi- 
norities as we do white male stu- 
dents." 

To reach those groups, the school 
is participating in a number of out- 
reach programs geared to high 
schools (and, on the graduate level, 
other universities) with large minor- 
ity populations. Kinsey and his col- 
leagues are also discussing ways to 
make early contact with Rice under- 
graduates who have expressed initial 
interest in the natural sciences in or- 
der to bolster that interest. 

Despite the financial challenges he 
sees in the future, Kinsey remains 
enthusiastic, not only about changes 
going on in the natural sciences but 
about Rice and the continuity of tra- 
ditions he saw here as an undergradu- 
ate in the 1950s — traditions with an 
interdisciplinary touch. "There is still 
that sense of a small, intimate institu- 
tion in which people tend to know 
one another, with many connections 
and friendships that reach across tra- 
ditional lines," he says. .,,- 



PAULA. KENNON 
DEAN OF THE SCHOOL 
OF ARCHITECTURE 




16 



In Memoriam 

Rice University School of Architec- 
ture Dean Paul A. Kennon, FAIA, 
died suddenly on January 8, 1990, 
at age 55. "Paul Kennon s death is 
a great loss, both to the field of 
architecture and to Rice Univer- 
sity," said Rice President George 
Rupp. "In his brief time as our dean 
of architecture , Paul has won the 
admiration, respect, and affection 
of all of us. His engaging personal 
presence and his vigorous leader- 
ship of the School of Architecture 
will be sorely missed." 

The following article expresses 
Dean Paul Kennon s hopes and 
dreams for the School of Architec- 
ture. 



Paul Kennon, a leading American 
architect, believes he has come back 
to Rice as dean of the School of 
Architecture just at the right time to 
plan for the future. 

His ambitions for the school are 
just as tall and commanding as the 
major buildings he has designed 
from coast-to-coast. Kennon 's phi- 
losophy — if a veritable fountain of 
enthusiasm and drive can be 
summed up — is nothing less than 
"to kindle the passions of the 
young, brightest minds and talent 
we can find." And, in doing so, 
Kennon plans to move Rice into 
what he terms "a pre-eminent posi- 
tion" among architecture schools in 
the nation. 

Kennon 's knowledge of the Rice 
school and its history surpasses 
many of those he now leads. As a 
protege of the late Eero Saarinen, 
Kennon graduated with a master of 
architecture degree from Cranbrook 
Academy of Arts to work with 
Saarinen as senior designer. In 
1964, he became associate professor 
of architecture at Rice, spending 
much of his first two years in Chile 
as a visiting professor at the Univer- 
sidad de Chile. In 1966, he became 
associate director of the Rice 
school, teaming up with director 



William Caudill, whose firm Kennon 
joined (which later became CRSS). 

Although going back to private 
practice as principal designer and 
president of his firm, Kennon always 
kept close ties to Rice. Tapped to 
become dean of architecture begin- 
ning with the fall 1989 term, Kennon 
laid out his design plan for the future: 
major enhancement of curriculum, 
faculty, preceptorship programs, and 
an adventurous publishing program. 

"Our purpose is to create an excit- 
ing education and immerse our stu- 
dents in it," he says. "We have great 
strengths in design and practice al- 
ready in place. Our task is to enhance 
and expand these strengths. Our task 
is to teach the culture of architecture 
as history, to ignite the passions of 
the young as part of the studio proc- 
ess, and bring in the widest diversity 
of ideas along the cutting edge of 
theory and design." 

While planning for his first year as 
dean, Kennon recruited Alan Balfour, 
Scottish-born and Princeton-educated 
scholar noted as one of the leading 
international architecture educators, 
to fill the school's other senior ad- 
ministrative position, which had de- 
liberately been kept vacant. Balfour 
developed the graduate program in 
architecture for the Georgia Institute 
of Technology and previously 
planned and instituted a new graduate 
degree program at Massachusetts 
Institute of Technology. Now, Ken- 
non has asked Balfour to study the 
Rice curriculum and similarly en- 
hance the graduate program as his 
associate dean. 

"One of the first things recom- 
mended to me was to get in touch 
closely with the students," Kennon 
says. Thus, the new dean and holder 
of the Harry K. and Albert K. Smith 
Chair of Architecture rolled up his 
sleeves and took on the teaching of a 
design studio. Architecture students 
(Rice now has 100 undergraduates 
and some 100 graduate students) 
have the opportunity to learn from 
the architect who most recently de- 
signed Lee Iacocca's Chrysler Center 
and an innovative housing project in 
Tokyo. 

Kennon 's plans for enhancing the 
School of Architecture include work- 
ing toward establishing six chairs, 



doubling the present three. He hopes 
to build a mix of young emerging 
faculty with older, distinguished fac- 
ulty, sparked by visiting critics with 
some of the most challenging ideas in 
architecture today. 

"I'd like to activate the alumni of 
the School of Architecture and get 
them involved in our programs," he 
muses. One of those is publication of 
Rice projects and papers. 

"We have one of the most impor- 
tant preceptorship programs in archi- 
tecture today run by this school," 
Kennon says. "Each student here has 
the opportunity to work for a year in 
the studios of leading architects 
around the world. Why don't we get 
the students to publish the results of 
their year of preceptorship while 
they're still fresh from the experi- 
ence?" 

Kennon notes that he plans to 
expand the preceptorship to Japan 
and the Far East (as well as Europe) 
and is working on an exchange with 
architects in Moscow. 

The future also holds new interdis- 
ciplinary programs for the School of 
Architecture. "I want to challenge our 
students with faculty from the hu- 
manities, from engineering, and from 
the business school," Kennon says. 
"That is emerging as one of the great 
strengths of Rice and is one of the 
most important directions in which 
we must grow. At Rice, we live in a 
world of two cultures: humanities 
and the arts in one, and science and 
mathematics in the other. Architec- 
ture can become the interface be- 
tween the two." 



17 



MICHAEL P. HAMMOND 
DEAN OF THE SHEPHERD 
SCHOOL OF MUSIC 




L 



Michael Hammond, dean of the 
Shepherd School of Music, is con- 
cerned about Rice music students. 

By the time they reach the univer- 
sity, their parents have already in- 
vested a substantial sum of money in 
their music instruction, most of 
which is private and unavailable 
within the normal public school cur- 
riculum. Students with other aca- 
demic specialties have generally not 
had to pay individually for their labs, 
instruction, or special equipment, 
whereas the kind of pre-college sup- 
port a young musician needs is often 
extensive and expensive. 

Many of the music students' par- 
ents feel they have carried this addi- 
tional burden long enough — that it is 
now appropriate for the young per- 
formers' abilities and achievements 
to be recognized through scholar- 
ships. Many colleges and universities 
agree and provide merit awards to 
attract gifted musicians. 

Hammond sees Shepherd School 
students practicing four or more 
hours a day, attending classes, doing 
assignments, and performing fre- 
quently. On top of this invigorating, 
but heavy, workload, many of them 
hold down part-time jobs such as 
waiting on tables to pay their bills. 
"Think about it: making payments on 
their instrument, covering insurance 
costs and repairs can easily run more 
than $ 1 ,000 per year, especially if a 
major repair is needed," he says. 

Sometimes Hammond hears 
people say that outside work is good 
for his students' characters. "How 
can exhaustion and distraction be 
good for character?" he asks. 
"They're already working extremely 
hard just carrying the heavy academic 
load here plus practicing and per- 
forming. We need to give them time 
and require complete focus of their 
energies." 

Hammond's challenge for the 
1990s, then, is to build an endowed 
scholarship fund for these talented 
performers so they have time to fine- 
tune their craft. "We would like to 
offer full scholarships for all quali- 
fied music students; that would be the 
ideal. It is already done at the great 
Curtis Institute in Philadelphia, and, 
closer to home, Baylor is moving in 
that direction, too." 



There is little doubt that if anyone 
can raise the kind of money needed to 
endow scholarships, Michael Ham- 
mond is the person to do it. His sheer 
energy and vision shaped the new 
music school building, Alice Pratt 
Brown Hall, that is going up opposite 
the student center. Ground-breaking 
ceremonies took place last spring, 
and Hammond foresees this building 
as "the most functional and beautiful 
anywhere." 

"Without the building, this school 
could not have been better than 
'good,'" he asserts. "I knew that if we 
didn't build the building, then our fac- 
ulty would begin to lose heart over 
time and leave." 

The new building will do many 
things for music instruction and per- 
formance at Rice, according to Ham- 
mond. But, particularly, it will help 
attract "that small universe of tal- 
ented musicians who are also excel- 
lent students." 

"As they learn more about the 
building, the faculty, and the pro- 
gram, more of them will come to 
Rice," he believes. Noting that in the 
past some talented performers at- 
tracted to the school needed academic 
waivers to gain admission to Rice, he 
says, "We almost never ask for ex- 
ceptions for our students any more." 

So the kinds of students Ham- 
mond and his faculty are after want to 
come to a fine university — not just an 
excellent music school. "Rice and the 
Shepherd School of Music together 
have more to offer than almost any 
other school in this regard," he adds. 

Hammond sees a window of op- 
portunity opening. 

"The Shepherd School of Music 
can become one of the premier music 
schools in the world," he says. "As a 
matter of fact, we are no longer con- 
sidered a regional school or even a 
national music school. We are inter- 
national, with fully 25 percent of our 
graduate students coming from 
abroad." 

Hammond believes the building 
provides a historic opportunity. "We 
have to seize it or it will pass us by," 
he says. "The next stage in our devel- 
opment requires that we continue to 
enhance the quality of all our pro- 
grams — that we attract the students 
capable of handling a difficult educa- 



tional program (those who have both 
the energy and intellect), that we con- 
tinue to attract distinguished faculty, 
that we continue to flesh out our pro- 
grams in composition, theory, history 
and performance. All these elements 
matter." 

Part of the historic opportunity 
Hammond mentions also touches a 
basic educational issue. He and his 
colleagues favor a classic music edu- 
cation and believe this type of cur- 
riculum is the only thing that will free 
students to deal with the problems of 
their own time without having to fol- 
low every fashion that comes along. 

Today, some voices are saying 
that the future is entirely in technol- 
ogy, that we ought to stop teaching 
Bach, Mozart, and Brahms, harmony, 
ear-training, and counterpoint. "Our 
challenge is rather to incorporate the 
new while giving our students a solid 
foundation in the past," Hammond 
explains. 

"You can buy an electronic instru- 
ment that makes sounds like a vio- 
lin," he says. "But where do you go 
from there? You can connect this 
synthesizer through a midi to a com- 
puter, but where is the informed ear 
and imagination that will decide what 
is worth doing with this equipment? 

"Electronic instruments are full of 
potential only for someone who hears 
very well and who can look at these 
instruments and ask, 'Where can they 
take us that we haven't been before?' 
But this requires a thorough ground- 
ing in the past and complete technical 
control. In short, it requires the free- 
dom that comes with a classic educa- 
tion," Hammond points out. 

"Only the uneducated follow fash- 
ion for its own sake. With a firm 
grounding in history, our eyes and 
ears can be opened to the present and 
perhaps even to hints of the future." 

That's the same way he runs the 
Shepherd School of Music. With vi- 
sion, finesse, and persistence, Ham- 
mond tries to understand what good 
music instruction is, where it is 
going, what his students and faculty 
need, and what his school must do 
now so that music at Rice and all 
who attend the Shepherd School can 
have a fruitful future. 



19 



BENJAMIN F. BAILAR 
DEAN OF THE 

JONES GRADUATE SCHOOL 
OF ADMINISTRATION 




20 



Global competition. Federal restric- 
tions. Environmental regulations. Un- 
ion relations. Success in business can 
no longer be assured with a head for 
figures and good management skills. 

No one knows the intricacies of 
today's business world better than 
Benjamin Bailar, who arrived as dean 
of Rice's Jesse H. Jones Graduate 
School of Administration two years 
ago. Bailar brought with him first- 
hand knowledge of both the public 
and private sectors, having previously 
served as president and CEO of Scott 
Publishing Co., as executive vice 
president and director of U.S. Gyp- 
sum Co., and as U.S. Postmaster 
General. 

That experience is why Bailar is 
now so pleased with the direction the 
Jones School is taking — a direction 
that will produce Rice MBAs with 
not only the necessary skills in fi- 
nance and management but also with 
a solid grounding in how to deal with 
the myriad of aforementioned factors 
that make today's business world so 
complex. 

The most obvious manifestation of 
that dedication to training students 
for work either in the public or pri- 
vate sector is one of the Jones 
School's most unusual require- 
ments — one-fifth of the school's core 
curriculum is devoted to studying the 
interrelationship among the business 
community, the legal community, 
and government. Understanding that 
interrelationship, Bailar says, is criti- 
cal for success in today's market- 
place. 

"Governmental and legal pro- 
cesses are getting more important 
each year in terms of the ability of 
private corporations to function 
effectively," he explains. "I am con- 
vinced that business leaders of the 
future must understand the public 
sector." Bailar says that by "public 
sector" he means not only govern- 
mental and legal processes but also 
such entities as labor unions, the con- 
sumer movement, and the press — all 
fields with which the successful busi- 
ness manager must be familiar. 

A Jones School faculty member 
teaches the first part of the Legal and 
Governmental Processes course; 
four attorneys serving as adjunct fac- 
ulty members teach the second part. 



Though Bailar would eventually 
like to secure funding for a full-time 
faculty member to teach the second 
part of that course, he also recognizes 
the school's considerable adjunct fac- 
ulty as a real asset. The 35 adjuncts 
join a regular Jones School faculty 
that numbers 22 (including four posi- 
tions filled this fall) in teaching the 
school's 185 students. 

The presence of the adjunct fac- 
ulty, which teaches primarily second- 
year elective courses, provides Jones 
School students with a vital link to 
the business community and a fresh 
perspective on various aspects of 
management. 

Their presence is just one example 
of the many ways the Jones School 
interacts with the local business com- 
munity, taking full advantage of its 
presence in one of the largest busi- 
ness and economic centers in the 
country, Bailar notes. The school's 
Office of Executive Development 
both offers courses open to area busi- 
ness executives and prepares special 
in-house courses commissioned by 
local businesses for their own em- 
ployees. The school's placement of- 
fice links students with businesses 
inside and outside the Houston com- 
munity for summer internships and 
post-graduation jobs. An extern pro- 
gram sends students into area busi- 
nesses for a day or two each spring 
for some quick exposure to the busi- 
ness environment. The Dean's Semi- 
nar brings in speakers from outside 
the school each year to talk to stu- 
dents in the classroom environment. 
And, finally, the school's flex-time 
program admits 20 students each year 
who are allowed to stretch their stud- 
ies over a three-year period while 
continuing their employment — a pro- 
gram that brings business people 
from the community onto the campus 
as students. 

Community interest in the Jones 
School has taken other forms as well. 
A Council of Overseers — business 
leaders who visit the school twice a 
year — consults with Bailar and his 
colleagues about various problems 
and circumstances within the school. 
The Rice Accounting Council is a 
similar group that deals principally 
with the school's accounting pro- 
grams. 



And there is community financial 
support. The Houston Endowment, 
for example, has given $4 million 
over the last two years for the 
school's endowment, which has 
helped in faculty expansion. 

Community interest and support 
are important for that expansion, 
since the competition for good busi- 
ness school faculty has become in- 
tense. "The recruitment of faculty has 
become extraordinarily difficult and 
demanding," Bailar says. "But we've 
had some very solid support from the 
Houston business community in 
terms of expressing their interest and 
hopes to candidates who come to 
town for interviews." 

While Bailar contends with the 
concerns of faculty recruitment, he 
says one of the most immediate chal- 
lenges facing the school is more tan- 
gible. "We're in a nice new building 
[Herring Hall], and there are a lot of 
things that are right about the 
school," he says. "But we really need 
to equip our classrooms with projec- 
tors and computers. We're moving 
increasingly toward the situation 
where students need to have their 
own computers — we strongly encour- 
age it today, and it may be required in 
the not-too-distant future. When that 
happens, we will face some pressure 
in terms of financial aid." 

Looking ahead, Bailar would also 
like to see the Jones School begin a 
doctoral program — one he describes 
as "small but meaningful." 

In the meantime, Bailar looks 
around him and likes what he sees 
about the Jones School today. The 
students, most of whom are in their 
late 20s and are returning to graduate 
school after a brief stint in the work- 
ing world, are "bright and very seri- 
ous," he says. And the direction taken 
by the school's programs — preparing 
students to work effectively in the 
public or private sector — will remain 
relevant to society even if the "MBA 
Decade" that began in the early '80s 
begins to fade. 

"What we're doing, and what we 
need to continue to emphasize, is 
training our students to analyze and 
solve problems," Bailar says. "The 
training they get here will continue to 
be relevant." 

21 



MARY MCINTIRE 

DEAN OF CONTINUING STUDIES 

AND SPECIAL PROGRAMS 



■ I 



SFSlaS P. CARTEL 

C&VT^H FOR GGMI'NUIWO 



W 






* I \ \ 








22 



Perhaps the strongest link Rice Uni- 
versity has to the community is its 
Office of Continuing Studies. This 
bond is being strengthened annually 
by steady enrollment growth, provid- 
ing clear evidence that more and 
more Houston-area residents are 
attracted to the intellectual atmos- 
phere of Rice. 

OCS has grown despite a difficult 
economy. Enrollment in non-credit 
courses was nearly 8,200 for the 
1988-89 academic year, compared to 
5,500 just three years ago — a gain of 
nearly 50 percent. 

A daytime visitor to the newly 
named Speros P. Martel Center for 
Continuing Studies might find for- 
eign students in native dress while 
they study English as a second lan- 
guage. In the evening, corporate 
executives might drop in to attend 
"Conducting American Foreign Rela- 
tions," or a doctor in a scrub suit 
might be seen dashing from the 
Texas Medical Center to catch a class 
on public speaking. Retirees come in 
for courses in philosophy or art, 
while young professionals line up for 
"Test Yourself for Career Change." 

The choices are diverse, and a 
large number of the teachers are Rice 
professors. "We are fortunate in hav- 
ing a very high percentage of our 
faculty work with us," Dean of OCS 
and Special Programs Mary Mclntire 
says. "We represent the university to 
the community probably more than 
any other group on campus. Continu- 
ing Studies is a good showcase for 
the university." 

OCS serves a population that is 
three times larger than Rice under- 
graduate enrollment. "It can be hectic 
at times," she acknowledges, "but 
also very exciting." 

Unlike other divisions of the uni- 
versity, OCS is a difficult place to 
plan five or ten years ahead. A de- 
valuation of the peso translated into a 
large decline of Mexican students in 
the English-as-a-second-language 
program. The loosening of restric- 
tions in China a few years ago led to 
a course called "Changing China," 
but the crackdown in the summer of 
'89 prompted a new lecture on China 



for a course titled "Critical Moments 
in Modern History." 

"We have to change gears very 
rapidly in response to changes around 
us," Mclntire says. Some programs 
are offered repeatedly, especially in 
the area of foreign languages, but in 
the past three years a third of the 
overall program changed. "We've 
added 175 programs and courses in 
three years, out of a total of 500," she 
reports. 

To stay on top of things, Mclntire 
and her staff read extensively, listen 
to faculty, survey people who take 
OCS courses, and take suggestions 
over the phone. They maintain an 
"ongoing dialogue " about ideas for 
new programs. 

The field has grown nationwide in 
recent years. "It used to be that con- 
tinuing education was offered primar- 
ily through universities and colleges," 
she says. "Now it's offered by seem- 
ingly everybody — churches, high 
schools, community centers, for- 
profit businesses, some of which are 
nationwide, professional associations, 
and corporate in-house training pro- 
grams. The number of providers has 
grown considerably — but so has the 
demand." 

To succeed in the competitive 
arena. Rice offers programs not of- 
fered elsewhere. The intensive Rice 
Publishing Program is one-of-a-kind 
in the Southwest, and this summer 
OCS began offering courses in writ- 
ing and illustrating children's books. 

Mclntire has been instrumental in 
the phenomenal growth of Continuing 
Studies since 1975, when she com- 
pleted her Ph.D. in English at Rice. 
At that time, Linda Driskill, who was 
then the director of OCS, asked her to 
develop a program on the U.S. bicen- 
tennial. They came up with an inter- 
disciplinary series of courses that 
called upon the combined resources 
of Rice faculty members. 

"It was very, very hard work," 
Mclntire recalls. "I had one secretary, 
and we were tucked away in the 
library. I designed courses, enlisted 
the speakers, wrote the brochure 
copy, carried the slide projector, and 
introduced the speakers. It was good 
training." 

The success of the bicentennial 
course led to a series of "Living 



Texas" seminars as the state was 
experiencing a huge influx of North- 
eastern and Midwestern people curious 
about things Texan. Many OCS 
courses today continue to take a mul- 
tidisciplinary approach, and some call 
upon the strengths of a range of 
Houston organizations. 

"We do a lot of programs with 
other institutions, attempting to coor- 
dinate our efforts," she says. OCS has 
co-sponsored programs with the 
Museum of Fine Arts, Houston Bal- 
let, Houston Symphony, Alley Thea- 
ter, Houston Grand Opera, and the 
Society for the Performing Arts. 

OCS is a cost-recovery unit, so 
Mclntire must make sure enrollment 
fees cover staff salaries and fringe 
benefits, honoraria for faculty, main- 
tenance and utilities, as well as adver- 
tising to inform the public of new 
programs. Program fees are reason- 
able, with most eight-week evening 
courses priced less than $100. 

"I think all institutions of higher 
education, including private ones, 
have a responsibility to their commu- 
nities," she says. "Ideally, continuing 
studies should not only reflect but 
should help to articulate the univer- 
sity's mission to the larger commu- 
nity. We are working very hard to 
achieve that goal." 



23 



FINANCIAL 
REPORT 

1989 



25 



Report of Independent 
Public Accountants 



To the Board of Governors, 
William Marsh Rice University: 

We have audited the accompanying 
balance sheet of William Marsh Rice 
University (a nonprofit Texas corpo- 
ration) as of June 30, 1989, and the 
related statements of changes in fund 
balances and current funds revenues, 
expenditures and other changes for 
the year then ended. These financial 
statements are the responsibility of the 
University's management. Our respon- 
sibility is to express an opinion on 
these financial statements based on 
our audit. 

We conducted our audit in accord- 
ance with generally accepted auditing 
standards. Those standards require that 
we plan and perform the audit to obtain 
reasonable assurance about whether the 
financial statements are free of mate- 
rial misstatement. An audit includes 
examining, on a test basis, evidence 
supporting the amounts and disclosures 
in the financial statements. An audit 
also includes assessing the accounting 
principles used and significant esti- 
mates made by management, as well 
as evaluating the overall financial 
statement presentation. We believe 
that our audit provides a reasonable 
basis for our opinion. 



In our opinion, the financial state- 
ments referred to above present fairly, 
in all material respects, the financial 
position of William Marsh Rice Uni- 
versity as of June 30, 1989, and the 
changes in its fund balances and cur- 
rent funds revenues, expenditures and 
other changes for the year then ended 
in conformity with generally accepted 
accounting principles. As explained 
in Note 1, the annuity and life income 
funds have been included in the basic 
financial statements of the University, 
whereas in prior years these amounts 
were disclosed in the notes to the 
financial statements. 



M^^MAs ild^J^y^LCA. M_ (L& 



ARTHUR ANDERSEN & CO. 

Houston, Texas 
October 5, 1989 



26 



Balance Sheet 



June 30, 1989, with Comparative Totals at June 30, 1988 (Dollars in Thousands) 









1989 








1988 








Annuity and 












Current 


Endowment and 


life Income 


Plant 


Loan 








Funds 


Similar Funds 


Funds 


Funds 


Funds 


Combined 


Combined 


ASSETS 






CASH, RECEIVABLES AND OTHER ASSETS: 
















Cash 


$ 89 


$ - 


$ 2 


$ - 


$- 


$ 91 


$ 589 


Accounts receivable 


2,476 


25,567 


543 


78 


— 


28,664 


20,091 


Loans, net of allowance for doubtful accounts of $569 
















in 1989 and $530 in 1988 


— 


— 


— 


— 


5,313 


5,313 


5,142 


Other assets 


1,985 
4,550 


131 
25,698 


— 


— 


5,313 


2,116 
36,184 


1,761 




545 


78 


27,583 


INTERFUND RECEIVABLE (PAYABLE): 
















Interest-bearing endowment fund advances 


(187) 


9,943 


— 


(8,284) 


(1,472) 


— 


— 


Noninterest-bearing advances 


23,712 

23,525 

288 


(22,108) 
(12,165) 
665,657 


— 


(2,877) 

(11,161) 

3,390 

183,707 

$176,014 


1,273 

(199) 

17 

$5,131 


— 


— 




— 


— 


— 


INVESTMENTS (Notes 3 and 6) 


40,752 


710,104 

183,707 

$929,995 


648,561 


EDUCATIONAL PLANT (Note 5) 


— 


168,089 


Total assets 


$28,363 


$679,190 


$41,297 


$844,233 


LIABILITIES AND FUND BALANCES 
















LIABILITIES: 
















Accounts payable and accrued liabilities 


$ 8,722 


$ 13,232 


$ 113 


$ - 


$- 


$ 22,067 


$ 13,840 


Annuity and life income payable 


— 


— 


8,235 
8,348 


— 


- 


8,235 
30,302 


7,880 


Total liabilities 


8,722 


13,232 


— 


21,720 


COMMITMENTS AND CONTINGENCIES (Note 7) 






FUND BALANCES: 
















U.S. Government and private grants refundable 


— 


— 


— 


— 


3,527 


3,527 


3,177 


Annuity and life income funds 


— 


— 


32,949 


— 


— 


32,949 


28,159 


University funds - 
















Unrestricted 


4,305 


— 


— 


— 


— 


4,305 


4,305 


Internally designated 


6,359 


— 


— 


— 


— 


6,359 


3,846 


Restricted 


8,977 


— 


— 


— 


1,604 


10,581 


8,652 


Income unrestricted endowment 


— 


314,714 


— 


— 


— 


314,714 


286,708 


Income restricted endowment 


— 


168,515 


— 


— 


— 


168,515 


157,095 


Unrestricted funds functioning os endowment 


— 


142,404 


— 


— 


— 


142,404 


136,918 


Restricted funds functioning as endowment 


— 


40,325 


— 


— 


— 


40,325 


37,846 


Unexpended plant funds 


— 


— 


— 


8,946 


— 


8,946 


4,692 


Net investment in plant 


— 


— 


32,949 


167,068 
176,014 


5,131 


167,068 
899,693 


151,115 


Total fund balances 


19,641 


665,958 


822,513 


Total liabilities and fund balances 


$28,363 


$679,190 


$41,297 


$176,014 


$5,131 


$929,995 


$844,233 



See notes to financial statements. 



27 



Statement of Changes in Fund Balances 

For the year ended June 30, 1989, with Comparative Totals for 1988 (Dollars in Thousands) 



1989 



1988 



REVENUES AND OTHER ADDITIONS: 

Investment income (Notes 3 and 6) 
Realized gains on investments (Note 3) 
Gifts and bequests (Note 2) 
Tuition ond fees 
Grants and contracts 

Unrestricted revenues of auxiliary enterprises 
Additions to investment in plant - 
Direct expenditures (including $8,726 
charged to current funds expenditures in 









Endowment and 
















Current Funds 




Similar Funds 


Annuity and 
Life Income 


Plant Funds 


Loan 








Internally 






Functioning 




Investment 




Unrestricted 


Designated 


Restricted 


Endowment 


as Endowment 


Funds 


Unexpended 


in Plant 


Funds 


Combined 


Combined 


$39,931 


$ 194 


$13,900 


$ 3,607 


$ 2,770 


$ 134 


$ 686 


$ - 


$ 99 


$ 61,321 


$ 55,836 


— 


— 


— 


28,725 


13,235 


2,559 


97 


— 


— 


44,616 


109,094 


2,646 


— 


4,647 


6,629 


— 


2,879 


4,997 


205 


— 


22,003 


17,881 


18,664 


2,871 


— 


— 


— 


— 


— 


— 


— 


21,535 


19,076 


4,717 


— 


18,463 


— 


— 


— 


— 


— 


— 


23,180 


21,074 


15,596 


460 


— 


— 


— 


— 


— 


— 


— 


16,056 


14,303 



Repayment of advances from endowment 
funds 
Interest on loans receivable 
Other 

Total revenues ond other additions 

EXPENDITURES AND OTHER DEDUCTIONS: 

Educational and general expenditures 
Auxiliary enterprises expenditures 
Expended for plant facilities 
Repayment of advances from endowment funds 
Interest on endowment fund advances 
Amortization of auxiliary ond educational 

service facilities 
Retirement of plant assets 
Loan cancellations and collection costs 
Refunded to grantors 

Total expenditures and other deductions 

TRANSFERS AMONG FUNDS - 
ADDITIONS (DEDUCTIONS): 

Mandatory- 
Loan fund matching grants 
Undesignated gifts (Note 2) 
Provision for plant improvements (Note 5) 

Funding of unrestricted current expenditures 
for equipment 

Funding of principal and interest payments 
for plant additions 

Matured annuity and life income funds 

Other voluntary transfers, net 

Total transfers 
NET INCREASE FOR THE YEAR 
FUND BALANCE AT BEGINNING OF YEAR 
FUND BALANCE AT END OF YEAR 

See notes to financial statements. 



404 



81,958 



60,744 
17,346 



78,( 



(58) 
(3,929) 

4,629 



1,473 
4,998 



4,429 
704 



5,133 



37,228 



35,043 
524 



38,961 



16,005 



7,327 



5,572 



35,579 



7,327 



58 



(22) 
3,929 
(4,629) 



— 


19,087 


— 


19,087 


12,433 





335 





335 


323 


— 


— 


247 


247 


239 


400 


— 


204 
550 


2,699 
211,079 


2,048 


6,180 


19,627 


252,307 


_ 


_ 


_ 


100,216 


90,338 


— 


— 


— 


18,574 


17,430 


3,034 


— 


— 


10,361 


6,809 


335 


— 


— 


335 


323 


356 


— 


139 


495 


612 





497 





497 


323 


— 


3,177 


— 


3,177 


2,995 


— 


— 


232 


232 


266 


— 


— 


371 


12 
133,899 


10 


3,725 


3,674 


119,106 



22 



(691) 
(3,819) 


2,648 

2,648 

2,513 
3,846 

$6,359 


429 

429 

2,078 
6,899 

$ 8,977 


782 
(375) 

465 

39,426 
443,803 

$483,229 


9 

(713) 

7,965 

174,764 

$182,729 


(782) 

(782) 

4,790 
28,159 

$32,949 


691 

1,108 
1,799 
4,254 
4,692 

$ 8,946 


— 


22 

201 
4,930 

$5,131 


- 


- 


(3,868) 


— 


77,180 
822,513 

$899,693 


— 


4,305 
$ 4,305 


15,953 
151,115 

$167,068 


133,201 
689,312 

$822,513 



28 



Statement of Current Funds Revenues, Expenditures and Other Changes 

For the year ended June 30, 1989, with Comparative Totals for 1988 (Dollars in Thousands) 



1989 



REVENUES: 

Educational and general - 

Endowment income (Notes 3 and 6) 
Tuition and fees 

Government grants and contracts 
Private grants and contracts 
Gifts and bequests (Note 2) 
Departmental sales and services 
Other sources 

Total educational and general 
Auxiliary enterprises 

Total revenues 

EXPENDITURES: 

Educational and general - 
Instruction and departmental research 
Sponsored research 
Other sponsored programs 
Library 

Scholarships and fellowships 
Student services 

Operation and maintenance of plant 
General administration 
Institutional development 

Total educational and general 
Auxiliary enterprises 

Total expenditures 

TRANSFERS AND ADDITIONS (DEDUCTIONS): 

Mandatory transfers - 

Undesignated gifts (Note 2) 

Provision for plant improvements (Note 5) 
Voluntary transfers, net 
Other additions (deductions) - 

Amount of restricted receipts over transfers to revenues 

Refunded to grantors 

Net transfers and additions (deductions) 
Net increase in fund balances 
See notes to financial statements. 



1988 





Internally 








Unrestricted 


Designated 


Restricted 


Combined 


Combined 


$39,931 


$ 194 


$13,900 


$ 54,025 


$46,903 


18,664 


2,871 


— 


21,535 


19,076 


3,822 


— 


14,021 


17,843 


15,223 


895 


— 


4,442 


5,337 


5,146 


2,646 


— 


2,557 


5,203 


4,775 


340 


1,419 


122 


1,881 


1,568 


64 


54 
4,538 


1 


119 
105,943 


156 


66,362 


35,043 


92,847 


15,596 


460 


524 


16,580 


14,849 


81,958 


4,998 


35,567 


122,523 


107,696 


25,955 


3,523 


13,241 


42,719 


38,231 


— 


— 


17,037 


17,037 


14,830 


— 


— 


1,115 


1,115 


1,033 


4,304 


546 


309 


5,159 


4,377 


7,788 


1 


2,720 


10,509 


10,081 


2,616 


163 


33 


2,812 


2,420 


9,353 


— 


526 


9,879 


9,363 


8,095 


179 


40 


8,314 


7,514 


2,633 


17 


22 


2,672 


2,489 


60,744 


4,429 


35,043 


100,216 


90,338 


17,346 


704 


524 


18,571 


17,430 


78,090 


5,133 


35,567 


118,790 


107,768 


(58) 






(58) 


(118) 


(3,929) 


— 


— 


(3,929) 


(3,501) 


119 


2,648 


429 


3,196 


4,052 


— 


— 


1,661 


1,661 


1,555 


— 


— 


(12) 


(12) 


(10) 


(3,868) 


2,648 


2,078 


858 


1,978 


$- 


$2,513 


$ 2,078 


$ 4,591 


$ 1,906 



29 



Notes to Financial Statements 

JUNE 30, 1989 

(7; Summary of significant accounting 

policies- 
Basis of accounting- 

The financial statements of William Marsh 
Rice University (the University) have been 
prepared in accordance with generally accepted 
accounting principles for colleges and univer- 
sities. Accordingly, the accompanying financial 
statements have been prepared on the accrual 
basis of accounting, except for depreciation of 
educational plant facilities, as explained below. 
Limitations and restrictions placed on the use of 
available resources are recognized in the accom- 
panying financial statements through the use of 
fund accounting. Fund accounting is a procedure 
by which resources are classified for accounting 
and reporting purposes into separate funds in 
accordance with specified objectives or ac- 
tivities. Funds having similar characteristics 
together with all related financial transactions 
have been combined into fund groups in the 
accompanying financial statements. The annuity 
and life income funds have been included in 
the basic financial statements of the University, 
whereas in prior years these amounts were 
disclosed in the notes to the financial state- 
ments (see the annuity and life income funds 
section below). 

The financial information shown for 1988 in 
the accompanying financial statements is in- 
cluded to provide a basis for comparison with 
1989 and presents summarized totals only. 
Certain of the 1988 financial information has 
been reclassified to conform with current year 
presentation. 

Current funds- 

The statement of current funds revenues, 
expenditures and other changes is a statement 
of financial activities of current funds related to 
the current reporting period. It does not purport 
to present the net income or loss for the period 
as would a statement of income or a statement 
of revenues and expenses. 

The unrestricted current fund is used to 
account for those transactions related to the 
University's operating budget as approved by 
the board of governors and for certain resources 
which have been designated for specific pur- 
poses by the University's administration. These 
latter items are presented under the internally 
designated caption. With the exception of the 
internally designated fund balance, it is the 
policy of the board of governors to transfer any 
net increase in the unrestricted current fund 
balance for the year to unrestricted funds 
functioning as endowment. 

The restricted current fund is used to account 
for funds expended for current operations but 



restricted by donors or other external sources for 
specific purposes. In the statement of current 
funds revenues, expenditures and other changes, 
restricted current fund receipts are reported as 
revenues when expended. 

Current funds used to purchase equipment 
are accounted for as expenditures of the current 
funds. Equipment expenditures of the unre- 
stricted current fund are funded by a transfer 
from that portion of unrestricted funds function- 
ing as endowment described in Note 5. 

Endowment and similar funds- 
Endowment funds are generally subject to 
the restrictions of gift instruments requiring that 
the principal be invested and only the income 
be expended. Gains and losses arising from the 
disposition of the investments are accounted for 
as changes in principal. Endowment funds are 
either income restricted or income unrestricted 
as stipulated by the donor. Investment income 
from income restricted endowments may be 
expended only for the purpose specified by the 
donor; unrestricted endowment income may be 
expended for any purpose approved by the board 
of governors. 

The board of governors has designated certain 
restricted and unrestricted funds to function as 
endowment funds. Restricted funds functioning 
as endowment are comprised of (a) restricted 
current gifts transferred to this fund by the board 
of governors and (b) any excess of restricted 
investment income over current expenditures. 
The principal of these funds may be expended, 
but only in accordance with the original specifi- 
cations of the donor. Investment income from 
these funds is also subject to the same restric- 
tions as the original gifts. The principal of 
unrestricted funds functioning as endowment 
is spendable at the discretion of the board of 
governors. 

Generally, income from unrestricted endow- 
ment and similar funds is reported as revenue 
of the unrestricted current fund, and income 
from restricted endowment and similar funds 
is reported in the fund to which it is restricted. 
However, investment income from developed 
real estate and oil and gas properties equal to 
amortization of the properties is retained in 
the endowment funds for the purpose of asset 
recovery. Also, 27!/:% ($1,011,000 for 1989) of 
the net receipts from oil and gas royalties are 
retained in the income unrestricted endowment 
fund after the related properties are fully 
amortized. In addition, income from restricted 
funds supporting educational chairs in excess 
of current-year expenditures is also retained 
in the endowment funds. 

Annuity and life income funds- 
Annuity and life income funds arise from gifts 
which are subject to the requirement that the 
University or its subsidiary act as trustee for the 
donated assets and periodically pay specified 
amounts to the designated beneficiaries. Gener- 
ally, beneficiary payments are fixed for annuity 
funds and based on the income earned on the 
donated assets for life income funds. At a 



specified time in the agreements, usually upon 
the deaths of the beneficiaries, the ownership of 
the donated assets will transfer to the University 
and the beneficiary payments will cease. An- 
nuity funds also include gift annuities which 
arise from gifts for which the University takes 
ownership of the assets at the date of gift with an 
obligation to periodically pay specified amounts 
to designated beneficiaries. Annuity and life 
income payable includes the discounted annuity 
obligation and undistributed life income fund 
earnings. 

The annuity and life income funds have been 
included in the basic financial statements of the 
University, whereas in prior years these amounts 
were disclosed in the notes to the financial state- 
ments. The effect of combining annuity and life 
income funds in the University's financial state- 
ments was to increase combined fund balances 
at June 30, 1989, by $27,687,000, excluding 
the effect of gift annuities which were reclassi- 
fied from endowment to annuity and life income 
funds. Also, the 1988 combined financial state- 
ments have been restated to reflect the inclusion 
of annuity and life income funds and the reclassi- 
fication of gift annuities. 

Plant funds- 
Plant funds consist of amounts in the educa- 
tional plant together with unexpended gifts, 
grants, income and administratively designated 
funds which are held for acquisition, replace- 
ment or construction of physical properties. 
The educational plant is stated at cost for pur- 
chased assets and fair market value at the date 
of donation in the case of gifts. Auxiliary and 
educational service facilities financed with ad- 
vances from endowment funds are depreciated 
over their estimated useful lives. Although no 
other educational plant assets are depreciated, 
it is the University's policy to retire capitalized 
equipment at the rate of 6Vi% per year. 

Certain capital projects and major maintenance 
projects for auxiliary enterprises are funded with 
interest-bearing advances from unrestricted 
funds functioning as endowment. The advances 
for capital and major maintenance projects 
bear interest ranging primarily from 4% to 11%. 
In September 1988. the Financial Accounting 
Standards Board released Statement of Financial 
Accounting Standards No. 99 (Deferral of the 
Effective Date of Recognition of Depreciation 
by Not-for-Profit Organizations). The statement, 
which is required to be adopted not later than 
fiscal year 1991, requires all not-for-profit organi- 
zations to recognize the cost of utilizing long- 
lived tangible assets. The University is currently 
evaluating the impact of this statement and 
intends to adopt the statement no later than 1991. 

Loan funds- 
Loan funds include (a) gifts and grants which 
are limited by donors for the purpose of making 
loans to students or faculty, (b) federal student 
loan programs financed primarily by the federal 
government and administered by the University 
and (c) advances to the loan funds from unre- 
stricted funds functioning as endowment. The 
interest received on student loans financed by 
advances from unrestricted funds functioning as 
endowment is repaid to the endowment funds. 



30 



(2) Gifts and bequests- 
It is the policy of the University to include 
gifts as revenues or additions to the appropriate 
fund balances only when received. Gifts and 
bequests without any designated obligatory use 
are required to be added to endowment, accord- 
ing to a legal interpretation of the University's 
charter. These gifts are recorded as revenues of 
the unrestricted current fund and as mandatory 
transfers to the endowment and similar funds. 
Pledges outstanding at June 30, 1989 which 
will be recorded as revenues upon receipt of the 
gifts, are as follows: 



The following tabulation summarizes investment performance (excluding unrealized gains 
from market appreciation) for the year ended June 30, 1989: 



Current funds- 
Unrestricted 
Restricted 


S 4,000 
2,225,000 


Total current funds 
Endowment funds 
Plant funds 


2,229,000 
4,068,000 
9,293,000 


Total pledges 


$15,590,000 



(3) Investments- 

Investments are recorded at cost at date of 
acquisition or fair market value at date of dona- 
tion in the case of gifts, except for investments in 
wholly owned corporations which are accounted 
for in the endowment funds under the equity 
method. Property taxes and maintenance costs 
on undeveloped real estate interests in the un- 
restricted endowment have been capitalized 
(accumulated costs of approximately $2,71 1 ,000 
at June 30, 1989). 

Most income restricted endowment funds, 
restricted funds functioning as endowment and 
some unrestricted funds functioning as endow- 
ment participate in two common investment 
pools which are operated on a market value 
basis. Those income restricted funds, which by 
the terms of the gifts may not participate in such 
pools, are maintained on a separate investment 
basis. Other endowment funds are commingled 
for investment purposes in the general investment 
pool for unrestricted funds. Investments are 
made within established guidelines authorized 
by the board of governors. 

Investments at June 30, 1989 and 1988, are as 
follows: 

June 30 



1989 



1988 



Marketable securities 
($927,691,000 and 
$809,616,000 market 
value, respectively 

Developed real estate 
Undeveloped real estate 
Mortgage loons 
Wholly owned corporations, 

ot underlying equity 
Oil and gas properties 

(net of accumulated 

amortization of 

$26,475,000 and 

$26,410,000, 

respectively) 



$674,827,000 $615,524,( 

17,968,000 17,1 91, ( 

8,497,000 6,657,( 

6,086,000 6,738,( 



1,171,1 



,215,( 













Realized Gains 






Investment Income 




(Losses) 


, Net 








Annuity 












Endowment 


and Life 




Endowment 






Current 


and Similar 


Income 


Other 


and Similar 


Other 




Funds 


Funds 


Funds 


Funds 


Funds 


Funds 


Marketable securities 


$49,451,000 


$2,677,000 


$167,000 


$785,000 


$42,127,000 


$2,656,000 


Wholly owned corporations 


394,000 


2,600,000 


— 


— 


— 


— 


Oil and gos properties 


2,896,000 


1,011,000 


— 


— 


— 


— 


Other investments 


1,460,000 


89,000 


(33,000) 


- 


(167,000) 


— 




$54,201,000 


$6,377,000 


$134,000 


$785,000 


$41,960,000 


$2,656,000 



The above tabulation includes approximately $176,000 investment income earned by auxiliary 
enterprise investments. 



(4) Retirement plans- 

Substantially all employees are eligible to 
participate in a defined contribution retirement 
plan which is administered by an outside agency. 
The contributions of the University and the plan 
participants, who are fully vested, are applied to 
individual annuities issued to each participant. 
The University's contributions to the plan of 
$3,520,000 in 1989 were recorded as expendi- 
tures of the unrestricted current fund. 

The University also had a defined benefit 
retirement plan administered by the same out- 
side agency covering participants who began 
receiving retirement benefits prior to July 1, 
1976. and certain other employees. On May 26. 
1988, the board of governors approved the ter- 
mination of the defined benefit retirement plan. 
As of April 1 . 1989, guaranteed annuity benefits 
were purchased for all retired participants and 
the vested benefits for the remainder of the 
participants were combined with the existing 
defined contribution plan using substantially all 
of the net assets of the terminated plan . 

(5) Educational plant- 
Property and equipment of the educational 

plant at June 30, 1989, are as follows: 



Land 

Buildings and improvements 
Equipment, furniture and library books 
Construction in progress 
Less- Allowance for amortizotion of auxiliary 
and educotionol service facilities 



$ 9,507,000 

113,508,000 

67,348,000 

4,259,000 

(10,915,000) 



$183,707,0 



As a provision for plant improvements, a trans- 
fer equal to approximately 1 0% of unrestricted 
endowment income has been made from unre- 
stricted current funds to unrestricted funds func- 
tioning as endowment. The provision for these 
improvements is $4,015,000 at June 30, 1989. 



(6) Collateral for loaned securities- 

The University participates in a securities 
lending program administered by a broker using 
securities held in custody by the University's 
custodial bank. All loaned securities are col- 
lateralized with letters of credit held by the 
custodial bank equal to or greater than 102% 
of the daily market value of the securities. As 
of June 30, 1989. securities with a market value 
of $89,710,000 were loaned through this pro- 
gram. Investment income includes approximately 
$686,000 earned from securities loaned during 
fiscal 1989. 

(7) Commitments and contingencies- 
There are several suits and claims pending 

against the University, the effect of which cannot 
be estimated at this time; however, officials of 
the University and legal counsel believe that the 
ultimate liability, if any, will not be material to 
the University's financial position. 

The University was commited under contracts 
at June 30, 1989, for capital improvements and 
major maintenance of approximately $3 , 1 50,000 
to be financed primarily from funds function- 
ing as endowment and gifts. Commitments of 
$1,314,000 in the unrestricted current funds and 
$757,000 in the restricted current fund were also 
outstanding at June 30, 1989. 

The fund balance of unrestricted funds func- 
tioning as endowment includes a $5,000,000 
provision for contingencies at June 30, 1989. 
If funds are expended from this balance, it is 
replenished by transfers of unrestricted en- 
dowment income to maintain the balance at 
$5,000,000. No transfers were necessary during 
fiscal 1989. 



1,555,( 



I.236.C 



$710,104,000 $648,561,1 



31 



Rice University 
Board of Governors 

December 1. 1989 



Trustees 

Charles W. Duncan, Jr. 

Chair of Rice Board of 

Governors 

Chairman of the Board 

Duncan, Cook & Company 

Josephine E. Abercrombie 
Vice Chair of Rice Board of 
Governors 
Director, Josephine 
Abercrombie Interests 

D. Kent Anderson 

Chairman and CEO 

First Interstate Bank of Texas 

J. Evans Attwell 

Attorney. Managing Partner 

Vinson & Elkins 

John L. Cox 
Independent Oil Operator 

Burton J. McMurtry 
Partner, Technology Venture 
Investors 

Jack T. Trotter 
Investments 



Term Members 

J. D. Bucky Allshouse 
Attorney-at-Law 

Stephen C. Cook 

President 

Duncan. Cook & Company 

James A. Elkins III 

Senior Vice President 

First City Texas-Houston. N.A. 

./. Thomas Eubank 

Partner 

Baker & Botts 

James W. Glanville 

Senior Partner 

Lazard Freres & Company 

William P. Hobby 

Lt. Governor 
State of Texas 

Louisa Stude Sarofim 

Thomas D. Smith 
Former President 
Mega Construction Company 



32 



Alumni Governors 

Carolyn Douglas Devine 

Joyce Pounds Hardy 
Teacher, Writer 

Albert N. Kidd 

Strategic Planning Coordinator 

Exxon Company International 

Paula Meredith Mosle 



Trustees Emeriti 

Herbert Allen 
Director and Consultant 
Cameron Iron Works 

E. D. Butcher 
President (Retired) 
American Commercial Lines, 
Incorporated 

Harry J. Chavanne 
Banker & Investor 
Chavanne Enterprises 

Oveta Culp Hobby 

(Mrs. William P.)" 

Chairman of the Executive 

Committee 

H & C Communications. Inc. 

C. M. Hudspeth 

of Counsel 

DeLange. Hudspeth & Pitman 

Edward W. Kelley, Jr. 
Federal Reserve Board 

H. Malcolm Lovett 

Partner 

Baker & Botts 

Ralph S. O'Connor 

Principal 

Ralph O'Connor & Associates 

James U. Teague 
Retired 



Governor Advisors 

Judy Ley Allen 
Investments 

Richard A . Chapman 
TI Research Fellow 
Texas Instruments. Inc. 

Thomas H. Cruikshank 
President 
Halliburton Company 

William S. Farish III 

President 

W. S. Farish & Co. 



Catherine C. Hannah 

James W. Hargrove 
Financial Consultant 

Gerald D. Hines 

President 

Gerald D. Hines Interests 

Paul N. Howell 
Chairman of the Board 
Howell Corporation 

Carl I/lig 
Attomey-at-Law 

Jack S. Josey 

President 

Lenoir M. Josey, Inc. 

Howard B. Keck 

Chairman of the Board (Retired) 

Superior Oil Company 

Baine P. Kerr 
Chairman of Executive 
Committee 
Pennzoil Company 

William F. Kieschnick 
President & Chief Executive 
Officer (Retired) 
ARCO 

Neal T. Lacey 
Architect 

WendelD.Ley 
Investments 

/. Hugh Liedtke 
Chairman of the Boacd 
Pennzoil Company 

William M. McCardell 
President (Retired) 
Exxon Minerals Corp. 

Jeny McCleskey 

Director of Planning 

Chemicals & Pigment 

Department 

E. I. DuPont de Nemours & 

Company 

J. W. McLean 

President 

The Liberty National Bank & 

Trust Company 

James R. Meyers 

Judge of the 126th District Court 

(Retired) 

George R. Miner 

President 

Miner-Dederick Companies 

Pat H. Moore 

President 

Martin Moore, Inc. 



S. /. Morris 

Architect 

Cannady, Jackson & Ryan 

Walter D. Murphy 
Senior Vice President 
HCB Contractors 

Ralph W. Noble II 
President (Retired) 
Milchem, Inc. 

Haylett O'Neill. Jr. 
Exxon (Retired) 

M. Kenneth Oshman 
President and CEO 
Echelon 

J. Howard Rambin 

Chairman of the Board (Retired) 

Texaco. Inc. 

David L. Rooke 
Executive Vice President 
Dow Chemical Company 

Frank B. Rxan 
CEO 

Contex Electronics. Inc. 

Hany K. Smith 
Chairman of the Board 
Smith Development Corp. 

Louis D. Spaw. Jr. 
Chairman of the Board 
Spaw-Glass Construction, Inc. 

Karl C. ten Brink 
General Manager (Retired) 
Texaco. Inc. 

James O. Winston. Jr. 

Former Director 

Rowles. Winston Company 

Benjamin N. Woodson 
Chairman of the Board (Retired) 
American General Companies 

Helen S. Warden 




RICE 

Rice University 
P.O.Box 1892 
Houston, Texas 77251 



I